DoorDash Earnings: First-Quarter Results Are Solid, but Second-Quarter Outlook Is Flat

We are lowering our fair value estimate to $135 per share from $155 following for first-quarter earnings for narrow-moat DoorDash. The second-quarter outlook suggests flat growth in gross order value and adjusted EBITDA. While not a trend, this increases the risk that growth is slowing. We have lowered our long-term growth forecasts, the main drivers of the decrease in our fair value estimate. We are still expecting the company to return to growth and margin expansion by the end of the year and be on a path to full-year profitability for 2025. On the positive side, the US grocery business continued to grow at over 100% year over year, and the international business also maintained its growth rate, so there is reason to believe DoorDash has a long runway.